Today, the economies of most countries

are so interconnected that they form partof a single, interdependent globaleconomy.

Types of Globalisation

1. EconomicCountries that trade with many others and have few trade barriers are economicallyglobalised.

2. SocialA measure of how easily information and ideas pass between people in their owncountry and between different countries ( includes access to internet and social medianetworks).

3.PoliticalThe amount of political co-operation there is between countries.

Causes of Globalisation:1. ImprovedCommunications The development of communication technologiessuch as internet, email and mobile phones have beenvital to the growth of globalisation because they helpMNCs to operate throughout the world.

The development of satellite TV channels such as

Sky and CNN have also provided worldwidemarketing avenues for the concept and products ofglobalisation.

Causes of Globalisation2. Improved Transport

The development of refrigerated and container transport, bulk shipping

and improved air transport has allowed the easy mass movement ofgoods throughout the world. This assists globalisation.

Causes of Globalisation:3. Free Trade Agreements

MNCs and rich capitalist countries have always promoted global freetrade as a way of increasing their own wealth and influence.

International organisations such as the World Trade Organisation and

the IMF also promote free trade.

Causes of Globalisation:4. Global Banking

Modern communication technologies allow vast amounts of capital to

flow freely and instantly throughout the world.

The equivalent of up to $US1.3 trillion is traded each day through

international stock exchanges in cities such as New York, Londonand Tokyo.

Causes of Globalisation:5. The Growth of MNCs

The rapid growth of big MNCs such as Microsoft, McDonalds and Nike is a cause as well asa consequence of globalisation.

The investment of MNCs in farms, mines and factories across the world is a major part ofglobalisation.

Globalisation allows MNCs to produce goods and services and to sell products on a massivescale throughout the world.

The Effects of Globalisation:

1. Changed Food Supply

Food supply is no longer tied to the seasons. We can

buy food anywhere in the world at any time of the year .

The Effects of Globalisation:

2. Division of Labour

Because MNCs search for the cheapest

locations to manufacture and assemblecomponents, production processes may bemoved from developed to developingcountries where costs are lower.

The Effects of Globalisation:

3. Less Job Security In the global economy jobs are becoming more temporary and

insecure. A survey of American workers showed that people now hold 7

to 10 jobs over their working life.

The Effects of Globalisation:

4. Damage to the Environment More trade means more transport which uses more fossil fuels

and causes pollution.

Climate change is a serious threat to our future.

The Effects of Globalisation:

5. Cultural Impact Websites such as YouTube connect people across

the planet. As the world becomes more unified,

diverse cultures are being ignored. MNCs cancreate a monoculture as they remove localcompetition and thereby force local firms to close.

Replacing

The Effects of Globalisation

6. Increase in antiGlobalisation Protests

There is a growing awareness of the negative

impacts of globalisation. People have begun torealise that globalisation can be challenged bycommunities supporting each other in business andsociety and through public protest and politicallobbying.